Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the first quarter ended
March 31, 2020 (“Q1 2020”).
- Net Income of $32.8 million or
$0.21 per share in Q1 2020.
- Adjusted Net Income available to
common stockholders(1) of $32.6 million or $0.27 per share in Q1
2020.
- Voyage Revenues of $121.4
million.
- Liquidity of $268.4 million as of
end Q1 2020 (including our share of cash amounting to $31.0 million
held in subsidiaries co-owned with York Capital Management Global
Advisors LLC and an affiliated fund (collectively, together with
the funds it manages or advises, “York”)).
- No material balloon payments in
2020(2).
- Chartered in total 12 vessels over
the quarter.
- Declared dividend of $0.10 per
share on its common stock and dividends on all four classes of its
preferred stock.
- Initiated a Preferred Shares
buyback program for an amount of up to $15.0 million.
- Arranged financing agreements for
an aggregate amount of $165.0 million. More specifically:
º Signed a loan facility
agreement with a European financial institution for an amount of up
to $65.0 million in order to refinance the existing indebtedness of
one 11,010 TEU capacity containership (co-owned under our joint
venture with York) and for general corporate purposes.
º Signed a loan facility agreement
with a European financial institution for an amount of up to $30.0
million in order to partially finance the acquisition cost of four
4,258 TEU capacity containerships.
º Signed a loan facility agreement
with a European financial institution for an amount of up to $70.0
million in order to refinance two existing loan facilities
originally maturing in 2021.
(1) Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share are non-GAAP measures
and should not be used in isolation or as substitutes for
Costamare’s financial results presented in accordance with U.S.
generally accepted accounting principles (“GAAP”). For the
definition and reconciliation of these measures to the most
directly comparable financial measure calculated and presented in
accordance with GAAP, please refer to Exhibit I.(2) Balloon payment
of $12.0 million payable in December 2020 for two 7,403 TEU
containerships with a total lightweight of about 69,000 tons.
New Business Developments
A. New
charter agreements
º The Company has chartered in total
12 vessels over the quarter. More specifically, the Company agreed
to:
I. Vessels above 5,500 TEU
capacity (Post – Panamax)
- Extend the charter of the
2017-built, 11,010 TEU containership Cape Artemisio with Hapag
Lloyd for a period of 34 to 38 months at charterers’ option,
starting from May 12, 2020 at a daily rate of $38,750 (net).
Previous daily rate was $32,500 (net).
- Extend the charter of the
2017-built, 11,010 TEU containership Cape Tainaro with ZIM for a
period of 11 to 13 months at charterers’ option, starting from
April 13, 2020 at a daily rate of $38,000. Previous daily rate was
$39,500.
- Extend the charter of the
2017-built, 11,010 TEU containership Cape Sounio with ZIM for a
period of 11 to 13 months at charterers’ option, starting from
April 15, 2020 at a daily rate of $38,000. Previous daily rate was
$33,500.
- Extend the charter of the
2006-built, 9,469 TEU containership Cosco Guangzhou with COSCO for
a period of 3 to 6 months at charterers’ option, starting from May
15, 2020 at an undisclosed daily rate.
- Extend the charter of the
2006-built, 9,469 TEU containership Cosco Ningbo with COSCO for a
period of 3 to 6 months at charterers’ option, starting from May
15, 2020 at an undisclosed daily rate.
- Charter the 2010-built, 8,531
TEU containership Navarino with MSC for a period of 12 to 14 months
at charterers’ option, starting from March 16, 2020 at a daily rate
of $23,000. Previous daily rate was $21,900.
- Extend the charter of the
1997-built, 7,400 TEU containership Maersk Kawasaki with Maersk for
a period starting from March 30, 2020 and expiring at charterers’
option during the period from June 1, 2020 to June 10, 2020, at a
daily rate of $24,750. Previous daily rate was $17,050.
- Charter the 2000-built, 6,648
TEU containership York with Maersk starting from March 29, 2020 and
expiring at charterers’ option during the period from May 15, 2020
to June 30, 2020, at a daily rate of $21,500. Previous daily rate
was $11,450.
II. Vessels below 5,500 TEU
capacity
- Charter the 2010-built, 4,258
TEU containership Volans with Maersk starting from March 7, 2020
and expiring at charterers’ option during the period from May 7,
2020 to November 15, 2020, at a daily rate of $12,000. Previous
daily rate was $13,250.
- Charter the 2005-built, 2,556
TEU containership Etoile for a period of 5.5 to 11 months, at an
undisclosed daily rate.
- Extend the charter of the
2000-built, 2,474 TEU containership Areopolis with Yang Ming for a
period of 2 to 4 months at charterers’ option, starting from March
6, 2020, at a daily rate of $9,100. Previous daily rate was
$8,800.
- Extend the charter of the
2001-built, 1,550 TEU containership Arkadia with Evergreen for a
period of 5 to 7 months at charterers’ option, starting from April
28, 2020 at a daily rate of $8,650. Previous daily rate was
$9,450.
B. Vessel
Disposal
º In January 2020, we concluded the
sale of the 2000-built, 1,645 TEU containership Neapolis.
C. New
Financing Agreements
º In February 2020, we entered into a
financing agreement with a European financial institution for the
four 4,258 TEU capacity sister containerships (2010-built
Vulpecula, 2010-built Volans, 2009-built Vela and 2009-built JPO
Virgo) for a total financing amount of $30 million. The loan
facility will be repayable over four years.
º In February 2020, we entered into a
loan agreement with a European financial institution for an amount
of $65 million. The loan proceeds have been used for the
refinancing of the existing indebtedness of the 2016-built, 11,010
TEU containership Cape Akritas (co-owned under our joint venture
with York) and for general corporate purposes. The new facility
will be repayable over five years.
º In April 2020, we signed a loan
facility agreement with a European financial institution for an
amount of up to $70.0 million, in order to refinance two facilities
originally maturing in 2021 (balloon payments of $54.3 million).
The refinancing is expected to be completed in May 2020 and the new
facility will mature in 2025.
D. Dividend
announcements
º On April 1, 2020, we declared a
dividend for the quarter ended March 31, 2020, of $0.10 per share
on our common stock, payable on May 7, 2020, to stockholders of
record of common stock as of April 21, 2020.
º On April 1, 2020, we declared a
dividend of $0.476563 per share on our Series B Preferred Stock, a
dividend of $0.531250 per share on our Series C Preferred Stock, a
dividend of $0.546875 per share on our Series D Preferred Stock and
a dividend of $0.554688 per share on our Series E Preferred Stock,
which were all paid on April 15, 2020 to holders of record as of
April 14, 2020.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“COVID-19 presents the largest shock in the
global economy since the 2008-2009 crisis. The supply of
containerized goods has experienced a rare episode of disruption
and the industry must now contend with the consequences of reduced
demand.
Determining the timing and shape of the recovery
is a challenge, yet it is worth noting that the protective measures
adopted across the world are intended to be temporary, and we
believe that the restrictions enforced are also creating a deferred
built-in demand.
In this environment the safety of our vessels’
crews as well as of our onshore employees remains our top priority.
We have taken steps in order to protect our employees as well as to
ensure uninterrupted service to our clients.
For the first quarter the Company delivered
profitable results. We have contracted revenues of $2.1 billion,
continued access to commercial bank debt, a smooth debt repayment
schedule and minimal cap ex requirements.
During the quarter we chartered in total 12
ships, including three 11,000 TEU vessels, which were chartered for
periods ranging from one to three years.
Finally, we recently declared our 38th dividend
since going public.
As has always been the case, but especially
during today’s unprecedented times, our top priority is to cover
our downside; building upon that, we will continue to monitor the
market and assess new initiatives in order to bolster our balance
sheet and liquidity position, while at the same time evaluating new
opportunities in a volatile market environment.”
COVID-19 Update
The outbreak of the COVID-19 virus has had a
negative effect on the global economy and has adversely impacted
the international container shipping industry. The situation is
rapidly evolving and, as such, it is difficult to predict the
ultimate severity and long-term impact of the pandemic on the
industry and Costamare at this time. For a detailed discussion of
the impact of COVID-19 on our operations and financial performance,
the Company response and an update of the relevant risk factor in
the Company’s most recent Annual Report on Form 20-F (File No.
001-34934), please see below.
Financial Summary
|
|
|
|
|
|
|
|
|
|
Three-month period endedMarch
31, |
|
(Expressed in thousands of
U.S. dollars, except share and per share data): |
|
|
2019 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
|
|
$ |
112,974 |
|
|
$ |
121,404 |
|
Accrued charter revenue
(1) |
|
|
$ |
(1,849 |
) |
|
$ |
696 |
|
Amortization of time-charter
assumed |
|
|
$ |
47 |
|
|
$ |
48 |
|
Voyage revenue adjusted on a
cash basis (2) |
|
|
$ |
111,172 |
|
|
$ |
122,148 |
|
|
|
|
|
|
|
|
Adjusted Net Income available
to common stockholders (3) |
|
|
$ |
13,580 |
|
|
$ |
32,560 |
|
Weighted Average number of
shares |
|
|
|
113,035,525 |
|
|
|
119,535,940 |
|
Adjusted Earnings per share
(3) |
|
|
$ |
0.12 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
Net Income / (Loss) |
|
|
$ |
(1,654 |
) |
|
$ |
32,776 |
|
Net Income / (Loss) available
to common stockholders |
|
|
$ |
(9,297 |
) |
|
$ |
25,624 |
|
Weighted Average number of
shares |
|
|
|
113,035,525 |
|
|
|
119,535,940 |
|
Earnings / (Losses) per
share |
|
|
$ |
(0.08 |
) |
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
(1) Accrued charter revenue represents the
difference between cash received during the period and revenue
recognized on a straight-line basis. In the early years of a
charter with escalating charter rates, voyage revenue will exceed
cash received during the period and during the last years of such
charter cash received will exceed revenue recognized on a
straight-line basis.(2) Voyage revenue adjusted on a cash basis
represents Voyage revenue after adjusting for non-cash “Accrued
charter revenue” recorded under charters with escalating charter
rates. However, Voyage revenue adjusted on a cash basis is not a
recognized measurement under U.S. generally accepted accounting
principles (“GAAP”). We believe that the presentation of Voyage
revenue adjusted on a cash basis is useful to investors because it
presents the charter revenue for the relevant period based on the
then current daily charter rates. The increases or decreases in
daily charter rates under our charter party agreements are
described in the notes to the “Fleet List” below.(3) Adjusted Net
Income available to common stockholders and Adjusted Earnings per
Share are non-GAAP measures. Refer to the reconciliation of Net
Income to Adjusted Net Income.
Non-GAAP Measures
The Company reports its financial results in
accordance with U.S. GAAP. However, management believes that
certain non-GAAP financial measures used in managing the business
may provide users of these financial measures additional meaningful
comparisons between current results and results in prior operating
periods. Management believes that these non-GAAP financial measures
can provide additional meaningful reflection of underlying trends
of the business because they provide a comparison of historical
information that excludes certain items that impact the overall
comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and
in evaluating the Company’s performance. The tables below set out
supplemental financial data and corresponding reconciliations to
GAAP financial measures for the three-month periods ended March 31,
2020 and 2019. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, voyage revenue or net
income as determined in accordance with GAAP. Non-GAAP financial
measures include (i) Voyage revenue adjusted on a cash basis
(reconciled above), (ii) Adjusted Net Income available to common
stockholders and (iii) Adjusted Earnings per Share.
Exhibit I Reconciliation of Net Income
to Adjusted Net Income available to common stockholders and
Adjusted Earnings per Share
|
|
|
|
Three-month period endedMarch 31, |
(Expressed in thousands of
U.S. dollars, except share and per share data) |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
/ (Loss) |
|
|
$ |
(1,654 |
) |
|
$ |
32,776 |
|
Earnings allocated to
Preferred Stock |
|
|
|
(7,643 |
) |
|
|
(7,693 |
) |
Gain on retirement of
Preferred Stock |
|
|
|
- |
|
|
|
541 |
|
Net Income / (Loss)
available to common stockholders |
|
|
|
(9,297 |
) |
|
|
25,624 |
|
Accrued charter revenue |
|
|
|
(1,849 |
) |
|
|
696 |
|
General and administrative
expenses – non-cash component |
|
|
|
778 |
|
|
|
676 |
|
Amortization of prepaid lease
rentals, net |
|
|
|
2,009 |
|
|
|
- |
|
Amortization of Time charter
assumed |
|
|
|
47 |
|
|
|
48 |
|
Realized (Gain) / Loss on
Euro/USD forward contracts (1) |
|
|
|
96 |
|
|
|
(24 |
) |
(Gain) / Loss on sale /
disposal of vessels |
|
|
|
18,420 |
|
|
|
(10 |
) |
Loss on vessel held for
sale |
|
|
|
- |
|
|
|
232 |
|
Vessels’ impairment loss |
|
|
|
3,042 |
|
|
|
3,071 |
|
Loss on derivative
instruments, excluding interest accrued and realized on non-hedging
derivative instruments (1) |
|
|
|
334 |
|
|
|
2,247 |
|
Adjusted Net Income
available to common stockholders |
|
|
$ |
13,580 |
|
|
$ |
32,560 |
|
Adjusted Earnings per
Share |
|
|
$ |
0.12 |
|
|
$ |
0.27 |
|
Weighted average number of
shares |
|
|
|
113,035,525 |
|
|
|
119,535,940 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock and gain on retirement
of preferred stock, but before non-cash “Accrued charter revenue”
recorded under charters with escalating charter rates, realized
(gain)/loss on Euro/USD forward contracts, vessels’ impairment
loss, (gain)/loss on sale / disposal of vessels, loss on vessel
held for sale, non-cash general and administrative expenses and
non-cash other items, amortization of prepaid lease rentals, net,
amortization of Time charter assumed and non-cash changes in fair
value of derivatives. “Accrued charter revenue” is attributed to
the timing difference between the revenue recognition and the cash
collection. However, Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share are not recognized
measurements under U.S. GAAP. We believe that the presentation of
Adjusted Net Income available to common stockholders and Adjusted
Earnings per Share are useful to investors because they are
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in our industry.
We also believe that Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share are useful in
evaluating our ability to service additional debt and make capital
expenditures. In addition, we believe that Adjusted Net Income
available to common stockholders and Adjusted Earnings per Share
are useful in evaluating our operating performance and liquidity
position compared to that of other companies in our industry
because the calculation of Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share generally eliminates
the effects of the accounting effects of capital expenditures and
acquisitions, certain hedging instruments and other accounting
treatments, items which may vary for different companies for
reasons unrelated to overall operating performance and liquidity.
In evaluating Adjusted Net Income available to common stockholders
and Adjusted Earnings per Share, you should be aware that in the
future we may incur expenses that are the same as or similar to
some of the adjustments in this presentation. Our presentation of
Adjusted Net Income available to common stockholders and Adjusted
Earnings per Share should not be construed as an inference that our
future results will be unaffected by unusual or non-recurring
items.
(1) Items to consider for comparability include
gains and charges. Gains positively impacting Net Income available
to common stockholders are reflected as deductions to Adjusted Net
Income available to common stockholders. Charges negatively
impacting Net Income available to common stockholders are reflected
as increases to Adjusted Net Income available to common
stockholders.
Results of Operations
Three-month period ended March 31, 2020
compared to the three-month period ended March 31,
2019
During the three-month periods ended March 31,
2020 and 2019, we had an average of 60.2 and 61.9 vessels,
respectively, in our fleet. In the three-month period ended March
31, 2020, we accepted delivery of the secondhand containership JPO
Virgo with a TEU capacity of 4,258 and we sold the containership
vessel Neapolis with a TEU capacity of 1,645. In the three-month
period ended March 31, 2019, we sold the containership vessels MSC
Pylos and Piraeus with an aggregate capacity of 7,012 TEU. In the
three-month periods ended March 31, 2020 and 2019, our fleet
ownership days totaled 5,475 and 5,575 days, respectively.
Ownership days are one of the primary drivers of voyage revenue and
vessels’ operating expenses and represent the aggregate number of
days in a period during which each vessel in our fleet is
owned.
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except
percentages) |
|
Three-month period endedMarch 31, |
|
Change |
|
Percentage Change |
|
2019 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
113.0 |
|
$ |
121.4 |
|
$ |
8.4 |
|
|
7.4% |
|
Voyage expenses |
|
(1.8 |
) |
|
(2.5 |
) |
|
0.7 |
|
|
38.9% |
|
Voyage expenses – related
parties |
|
(1.0 |
) |
|
(1.6 |
) |
|
0.6 |
|
|
60.0% |
|
Vessels’ operating
expenses |
|
(30.0 |
) |
|
(27.9 |
) |
|
(2.1 |
) |
|
(7.0%) |
|
General and administrative
expenses |
|
(1.3 |
) |
|
(1.4 |
) |
|
0.1 |
|
|
7.7% |
|
Management fees – related
parties |
|
(5.5 |
) |
|
(5.3 |
) |
|
(0.2 |
) |
|
(3.6%) |
|
General and administrative
expenses - non-cash component |
|
(0.8 |
) |
|
(0.7 |
) |
|
(0.1 |
) |
|
(12.5%) |
|
Amortization of dry-docking
and special survey costs |
|
(2.3 |
) |
|
(2.2 |
) |
|
(0.1 |
) |
|
(4.3%) |
|
Depreciation |
|
(29.9 |
) |
|
(28.1 |
) |
|
(1.8 |
) |
|
(6.0%) |
|
Loss on sale / disposal of
vessels |
|
(18.4 |
) |
|
- |
|
|
(18.4 |
) |
|
|
n.m. |
|
Loss on vessel held for
sale |
|
- |
|
|
(0.2 |
) |
|
0.2 |
|
|
|
n.m. |
|
Vessels’ impairment loss |
|
(3.0 |
) |
|
(3.1 |
) |
|
0.1 |
|
|
3.3% |
|
Foreign exchange losses |
|
- |
|
|
(0.1 |
) |
|
(0.1 |
) |
|
|
n.m. |
|
Interest income |
|
0.8 |
|
|
0.6 |
|
|
(0.2 |
) |
|
(25.0%) |
|
Interest and finance
costs |
|
(22.9 |
) |
|
(18.5 |
) |
|
(4.4 |
) |
|
(19.2%) |
|
Income from equity method
investments |
|
1.7 |
|
|
4.2 |
|
|
2.5 |
|
|
147.1% |
|
Other |
|
- |
|
|
0.4 |
|
|
0.4 |
|
|
|
n.m. |
|
Loss on derivative
instruments |
|
(0.3 |
) |
|
(2.2 |
) |
|
1.9 |
|
|
|
n.m. |
|
Net Income /
(Loss) |
$ |
(1.7 |
) |
|
$ |
32.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
|
Three-month period endedMarch 31, |
|
|
Change |
|
|
PercentageChange |
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
|
113.0 |
|
|
$ |
|
121.4 |
|
|
$ |
8.4 |
|
|
|
7.4% |
|
Accrued charter revenue |
|
|
(1.8 |
) |
|
|
|
0.7 |
|
|
|
2.5 |
|
|
|
138.9% |
|
Amortization of time charter
assumed |
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
n.m. |
|
Voyage revenue adjusted on a
cash basis |
$ |
|
111.2 |
|
|
$ |
|
122.1 |
|
|
$ |
10.9 |
|
|
|
9.8% |
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Three-month period endedMarch 31, |
|
|
|
PercentageChange |
|
2019 |
|
2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
Average number of vessels |
|
61.9 |
|
60.2 |
|
(1.7 |
) |
|
(2.7 |
%) |
Ownership days |
|
5,575 |
|
5,475 |
|
(100 |
) |
|
(1.8 |
%) |
Number of vessels under
dry-docking |
|
3 |
|
6 |
|
3 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted
accounting principles (“GAAP”). Refer to “Financial Summary” above
for the reconciliation of Voyage revenue adjusted on a cash
basis.
Voyage Revenue
Voyage revenue increased by 7.4%, or $8.4
million, to $121.4 million during the three-month period ended
March 31, 2020, from $113.0 million during the three-month period
ended March 31, 2019. The increase is mainly attributable to
revenue earned by (i) three vessels acquired during the fourth
quarter of 2019 and one vessel acquired during the first quarter of
2020, (ii) increased charter rates for certain of our vessels
during the first quarter of 2020 compared to the first quarter of
2019 and (iii) decreased off-hire days for certain of our vessels
during the first quarter of 2020 compared to the first quarter of
2019, partly off-set by revenue not earned by five vessels sold
during the year ended December 31, 2019 and one vessel sold during
the first quarter of 2020.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”), increased by 9.8%,
or $10.9 million, to $122.1 million during the three-month period
ended March 31, 2020, from $111.2 million during the three-month
period ended March 31, 2019. Accrued charter revenue for the
three-month period ended March 31, 2020 was a positive amount of
$0.7 million and for the three-month period ended March 31, 2019
was a negative amount of $1.8 million.
Voyage Expenses
Voyage expenses were $2.5 million and $1.8
million for the three-month periods ended March 31, 2020 and 2019,
respectively. Voyage expenses mainly include (i) off-hire expenses
of our vessels, primarily related to fuel consumption and (ii)
third party commissions.
Voyage Expenses – related parties
Voyage expenses – related parties were $1.6
million and $1.0 million for the three-month periods ended March
31, 2020 and 2019, respectively. Voyage expenses – related parties
represent fees of 1.25%1 in the aggregate on voyage revenues
charged by related managers and charter brokerage fees payable to a
related charter brokerage company of amount less than $0.09
million, in the aggregate.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain / (loss) under derivative contracts entered into
in relation to foreign currency exposure, were $27.9 million and
$30.0 million during the three-month periods ended March 31, 2020
and 2019, respectively. Daily vessels’ operating expenses were
$5,090 and $5,374 for the three-month periods ended March 31, 2020
and 2019, respectively. Daily operating expenses are calculated as
vessels’ operating expenses for the period over the ownership days
of the period.
General and Administrative Expenses
General and administrative expenses were $1.4
million and $1.3 million during the three-month periods ended March
31, 2020 and 2019, respectively, and both include $0.63 million
paid to a related manager.
Management Fees – related parties
Management fees paid to our related managers
were $5.3 million and $5.5 million during the three-month periods
ended March 31, 2020 and 2019, respectively.
General and administrative expenses – non-cash
component
General and administrative expenses – non-cash
component for the three-month period ended March 31, 2020 amounted
to $0.7 million, representing the value of the shares issued to a
related manager on March 30, 2020. General and administrative
expenses – non-cash component for the three-month period ended
March 31, 2019, amounted to $0.8 million, representing the value of
the shares issued to a related manager on March 29, 2019.
Amortization of dry-docking and special
survey
Amortization of deferred dry-docking and special
survey costs was $2.2 million and $2.3 million during the
three-month periods ended March 31, 2020 and 2019, respectively.
During the three-month period ended March 31, 2020, five vessels
underwent and completed their special survey and one was in process
of completing her special survey. During the three-month period
ended March 31, 2019, three vessels underwent and completed their
special survey.
Depreciation
Depreciation expense for the three-month period
ended March 31, 2020 and 2019 was $28.1 million and $29.9 million,
respectively.
Gain / Loss on sale / disposal of vessels
During the three-month period ended March 31,
2020, we recorded a gain of $0.01 million from the sale of the
container vessel Neapolis which was classified as asset held for
sale as at December 31, 2019. During the three-month period ended
March 31, 2019, we recorded an aggregate loss of $18.4 million from
the sale of the container vessels Piraeus and MSC Pylos. MSC Pylos
was classified as asset held for sale as at December 31, 2018.
Loss on vessel held for sale
During the three-month period ended March 31,
2020, we recorded an additional loss of $0.2 million on one
vessel that was classified as vessel held for sale as at December
31, 2019, representing the expected loss from her sale during the
next twelve-month period.
Vessels’ impairment loss
During the three-month period ended March 31,
2020, we recorded an impairment loss in relation to three of our
vessels in the amount of $3.1 million, in the aggregate. During the
three-month period ended March 31, 2019, we recorded an impairment
loss in relation to two of our vessels in the amount of $3.0
million, in the aggregate.
Interest Income
Interest income amounted to $0.6 million and
$0.8 million for the three-month periods ended March 31, 2020 and
2019, respectively.
Interest and Finance Costs
Interest and finance costs were $18.5 million
and $22.9 million during the three-month periods ended March 31,
2020 and 2019, respectively. The decrease is mainly attributable to
the decreased financing cost during the three-month period ended
March 31, 2020 compared to the three-month period ended March 31,
2019.
Income from Equity Method Investments
During the three-month period ended March 31,
2020, we recorded an income from the equity method investments of
$4.2 million representing our share of the income in jointly owned
companies pursuant to the Framework Deed dated May 15, 2013, as
amended and restated (the “Framework Deed”), with York. As of March
31, 2020, 13 companies are jointly-owned with York (of which, 10
companies currently own vessels). During the three-month period
ended March 31, 2019, we recorded an income from equity method
investments of $1.7 million also relating to investments under the
Framework Deed.
Loss on Derivative Instruments
The fair value of our nine-interest rate
derivative instruments which were outstanding as of March 31, 2020
equates to the amount that would be paid by us or to us should
those instruments be terminated. As of March 31, 2020, the fair
value of these nine-interest rate derivative instruments in
aggregate amounted to liability of $7.8 million. The change in the
fair value of the interest rate derivative instruments that
qualified for hedge accounting is recorded in “Other Comprehensive
Income” (“OCI”) and reclassified into earnings in the same
period or periods during which the hedged transaction affects
earnings and is presented in the same income statement line item as
the earnings effect of the hedged item while the change in the fair
value of the interest rate derivatives representing hedge
components excluded from the assessment of effectiveness are
recognized currently in earnings and are presented in the same line
of the income statement expected for the hedged item. The change in
the fair value of the interest rate derivative instruments that did
not qualify for hedge accounting is recorded in the consolidated
statement of income. For the three-month period ended March 31,
2020, a loss of $6.0 million has been included in OCI and a loss of
$2.2 million has been included in Loss on derivative instruments in
the consolidated statement of income, resulting from the fair
market value change of the interest rate derivative instruments
during the three-month period ended March 31, 2020.
1 0.75% until June 30, 2019
Cash Flows
Three-month periods ended March 31, 2020 and
2019
Condensed cash
flows |
|
Three-month period endedMarch 31, |
(Expressed in millions of U.S. dollars) |
|
|
2019 |
|
|
|
2020 |
|
Net Cash Provided by Operating
Activities |
|
$ |
47.7 |
|
|
$ |
67.6 |
|
Net Cash Provided by Investing
Activities |
|
$ |
14.6 |
|
|
$ |
4.7 |
|
Net Cash Used in Financing
Activities |
|
$ |
(73.5 |
) |
|
$ |
(30.8 |
) |
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended March 31, 2020, increased by $19.9
million to $67.6 million, from $47.7 million for the three-month
period ended March 31, 2019. The increase is mainly attributable to
the increased cash from operations of $11.0 million, the favorable
change in working capital position, excluding the current portion
of long-term debt and the accrued charter revenue (representing the
difference between cash received in that period and revenue
recognized on a straight-line basis) of $4.0 million and the
decreased payments for interest (including swap payments) of $4.7
million during the three-month period ended March 31, 2020 compared
to the three-month period ended March 31, 2019; partly off-set by
the increased special survey costs of $3.4 million during the
three-month period ended March 31, 2020 compared to the three-month
period ended March 31, 2019.
Net Cash Provided by Investing Activities
Net cash provided by investing activities was
$4.7 million in the three-month period ended March 31, 2020, which
mainly consisted of return of capital we received from three
entities jointly -owned with York pursuant to the Framework Deed
and the proceeds we received from the sale of one vessel; partly
off-set by advance payments for upgrades for certain of our vessels
and payment for the acquisition of one secondhand vessel.
Net cash provided by investing activities was
$14.6 million in the three-month period ended March 31, 2019, which
mainly consisted of proceeds we received from the sale of two
vessel and advance payments for upgrades for certain of our
vessels.
Net Cash Used in Financing Activities
Net cash used in financing activities was $30.8
million in the three-month period ended March 31, 2020, which
mainly consisted of (a) $14.6 million net payments relating to our
debt financing agreements, (b) $6.8 million we paid for dividends
to holders of our common stock for the fourth quarter of 2019 and
(c) $1.0 million we paid for dividends to holders of our 7.625%
Series B Cumulative Redeemable Perpetual Preferred Stock (“Series B
Preferred Stock”), $2.1 million we paid for dividends to holders of
our 8.500% Series C Cumulative Redeemable Perpetual Preferred Stock
(“Series C Preferred Stock”), $2.2 million we paid for dividends to
holders of our 8.75% Series D Cumulative Redeemable Perpetual
Preferred Stock (“Series D Preferred Stock”) and $2.5 million we
paid for dividends to holders of our 8.875% Series E Cumulative
Redeemable Perpetual Preferred Stock (“Series E Preferred Stock”)
for the period from October 15, 2019 to January 14, 2020.
Net cash used in financing activities was $73.5
million in the three-month period ended March 31, 2019, which
mainly consisted of (a) $59.2 million payments relating to our debt
financing agreements (including the prepayments following the sale
of two container vessels during the three-month period ended March
31, 2019), (b) $6.6 million we paid for dividends to holders of our
common stock for the fourth quarter of 2018 and (c) $1.0 million we
paid for dividends to holders of our 7.625% Series B Preferred
Stock, $2.1 million we paid for dividends to holders of our 8.500%
Series C Preferred Stock, $2.2 million we paid for dividends to
holders of our 8.75% Series D Preferred Stock and $2.5 million we
paid for dividends to holders of our 8.875% Series E Preferred
Stock for the period from October 15, 2018 to January 14, 2019.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of March 31, 2020, we had a total cash
liquidity of $237.4 million, consisting of cash, cash equivalents
and restricted cash.
Debt-free vessels
As of April 29, 2020, the following vessels were free of
debt.
|
|
|
Unencumbered Vessels |
|
|
(Refer to fleet list for full details) |
|
|
|
|
|
|
Vessel Name |
|
|
Year Built |
|
TEU Capacity |
|
ETOILE |
|
2005 |
|
|
2,556 |
|
|
KOKURA |
|
1997 |
|
|
7,403 |
|
|
MICHIGAN |
|
2008 |
|
|
1,300 |
|
|
ENSENADA (*) |
|
2001 |
|
|
5,576 |
|
|
MONEMVASIA
(*) |
|
1998 |
|
|
2,472 |
|
|
ARKADIA (*) |
|
2001 |
|
|
1,550 |
|
|
(*) Vessels acquired pursuant to the Framework Deed with
York.
COVID-19 Update
Impact on Operations and Financial
Performance
Although we have taken steps to protect our
seafarers and shore employees and ensure uninterrupted service to
our clients, our operations and financial performance have been
unavoidably affected by the outbreak of the COVID-19 virus.
- We have a number of vessels whose
charters expire within the year and, subject to market conditions
which have been volatile we may be unable to charter these vessels
at the same rates or for the same length of time as we had
previously expected or find a suitable employment.
- We have eight vessels currently
undergoing or scheduled to undergo periodic repairs until the end
of the year, whose repair period may be extended.
- We are experiencing significant
delays in the installation of scrubbers in seven of our vessels,
which however remain on hire during the whole installation
period.
- On January 28, 2020, we received
notice of a force majeure from the shipyard constructing five
vessels. Of these ships, three are currently scheduled to be
delivered in the third quarter of 2020 and two will have an average
delay of less than a month from the original delivery schedule. At
this time we do not expect delays in the delivery of the other
three vessels (one scheduled to be delivered in the third quarter
of 2020 and two in the second quarter of 2021). Despite the delays
in the delivery of our vessels under construction, our contracted
revenues from the employment of these vessels are not
affected.
Costamare Response:
Our primary concern is ensuring the wellbeing of
our seafarers and employees, while also providing safe and reliable
services to our clients. In line with industry response we have
updated and continue to update vessels’ procedures and supplied our
fleet with protective equipment. We have suspended or limited crew
changes, superintendent visits and provisioning in heavily affected
areas and are complying with local directives and
recommendations.
Shoreside, our managers operate with a skeleton
staff with the remaining personnel working remotely. Our managers
have also instituted enhanced safety protocols such as constant
cleaning/disinfection of their premises, temperature readings,
prohibition of on-site visitors, severe limitation of travel,
mandatory self-isolation of personnel returning from travel and
substitution of physical meetings with virtual meetings. We are
also taking measures to improve the security of our network and
online communications and have stepped up monitoring of our
network. Our Shanghai based managers have now fully reopened their
office while following the local directives enhanced with
additional precautions such as flexible hours to avoid rush hour
travel and remote working for employees at risk because of
pre-existing conditions or age.
We are constantly monitoring the developing
situation, as well as our charterers’ response to the severe market
disruption via cost cutting and rationalization of their networks
and fleets, and are making necessary preparations to address and
mitigate, to the extent possible, the impact of COVID-19 to our
Company.
Risk Factor Update
Our financial and operating performance has been and may
continue to be adversely affected by the recent outbreak of the
COVID-19 virus.
Our business has been adversely affected and may
continue to be adversely affected by the recent outbreak of the
COVID-19 virus, which has introduced uncertainty into our
operational and financial activities and has negatively impacted,
and may continue to impact negatively, global economic activity. We
may be unable to re-charter our vessels or we may find employment
at lower rates or for shorter periods of time. If we cannot find
profitable employment for our vessels we may decide to sell them
for demolition especially in case of vessels that are scheduled to
undergo periodic repairs. The duration of scheduled repairs could
exceed the previously calculated period, causing our vessels to
remain off hire for longer periods than planned. Possible delays
due to quarantine of our vessels caused by COVID-19 infection of
our crew or other COVID-19 related disruptions may lead to the
termination of charters leaving our vessels without employment. It
is also possible that the liner companies that charter our vessels
will be materially impacted by the effects of the COVID-19 virus
outbreak and therefore may default on their charters or seek to
restructure the terms of their charters (which, however, are
legally binding).
The outbreak and the related responses to the
outbreak across the globe, including self-isolation and lockdown of
large sections of the world population, quarantines and travel
restrictions, has caused a significant decline in global output and
demand in March and April of 2020. The decline has had, and is
likely to continue to have, a significant negative effect on both
the demand and supply of goods shipped in containerized form. If
the outbreak persists or if it is contained only to be followed by
successive flare-ups, demand for our services may be reduced
further, which will decrease the price and number of our time
charters in the future and may result in some of our vessels
remaining idle for any length of time thus materially and adversely
affecting our business operations.
The global recession caused by the pandemic will
also severely affect financing institutions. If the impact on the
financing system is not addressed, we may find it difficult to
refinance loans that are maturing or to obtain financing for new
projects thus materially affecting our financial position.
Conference Call details:
On Wednesday, April 29, 2020 at 8:30 a.m. EST,
Costamare’s management team will hold a conference call to discuss
the financial results. Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or
+1-412-317-9258 (from outside the US and the UK). Please quote
“Costamare”. A replay of the conference call will be available
until May 6, 2020. The United States replay number is
+1-877-344-7529; the standard international replay number is
+1-412-317-0088; and the access code required for the replay is:
10143504.
Live webcast:
There will also be a simultaneous live webcast
over the Internet, through the Costamare Inc. website
(www.costamare.com). Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world’s leading
owners and providers of containerships for charter. The Company has
46 years of history in the international shipping industry and a
fleet of 75 containerships, with a total capacity of approximately
547,000 TEU, including five newbuild containerships currently under
construction. Ten of our containerships have been acquired pursuant
to the Framework Deed with York by vessel-owning joint venture
entities in which we hold a minority equity interest. The Company’s
common stock, Series B Preferred Stock, Series C Preferred Stock,
Series D Preferred Stock and Series E Preferred Stock trade on the
New York Stock Exchange under the symbols “CMRE”, “CMRE PR B”,
“CMRE PR C”, “CMRE PR D” and “CMRE PR E”, respectively.
Forward-Looking Statements
This earnings release contains “forward-looking
statements”. In some cases, you can identify these statements by
forward-looking words such as “believe”, “intend”, “anticipate”,
“estimate”, “project”, “forecast”, “plan”, “potential”, “may”,
“should”, “could”, “expect” and similar expressions. These
statements are not historical facts but instead represent only
Costamare’s belief regarding future results, many of which, by
their nature, are inherently uncertain and outside of Costamare’s
control. It is possible that actual results may differ, possibly
materially, from those anticipated in these forward-looking
statements. For a discussion of some of the risks and important
factors that could affect future results, see the discussion in
Costamare Inc.’s most recent Annual Report on Form 20-F (File No.
001-34934) under the caption “Risk Factors”, as well as the above
Risk Factor update.
Company Contacts: Gregory Zikos - Chief
Financial Officer Konstantinos Tsakalidis - Business Development
Costamare Inc., Monaco Tel: (+377) 93 25 09 40Email:
ir@costamare.com
Fleet List
The table below provides additional information,
as of April 29, 2020, about our fleet of containerships, including
our newbuilds on order, the vessels acquired pursuant to the
Framework Deed and those vessels subject to sale and leaseback
agreements. Each vessel is a cellular containership, meaning it is
a dedicated container vessel.
|
|
|
|
|
|
|
|
Vessel Name |
Charterer |
YearBuilt |
Capacity(TEU) |
Current DailyCharter
Rate(1)(U.S. dollars) |
Expiration ofCharter(2) |
1 |
TRITON(ii) |
Evergreen |
2016 |
14,424 |
(*) |
March 2026 |
2 |
TITAN(ii) |
Evergreen |
2016 |
14,424 |
(*) |
April 2026 |
3 |
TALOS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
July 2026 |
4 |
TAURUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
5 |
THESEUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
6 |
CAPE AKRITAS(i) |
ZIM |
2016 |
11,010 |
43,250 |
August 2020 |
7 |
CAPE TAINARO(i) |
ZIM |
2017 |
11,010 |
38,000 |
March 2021 |
8 |
CAPE KORTIA(i) |
ZIM |
2017 |
11,010 |
43,250 |
September 2020 |
9 |
CAPE SOUNIO(i) |
ZIM |
2017 |
11,010 |
38,000 |
March 2021 |
10 |
CAPE ARTEMISIO(i) |
Hapag Lloyd |
2017 |
11,010 |
38,750 (net) |
March 2023(3) |
11 |
COSCO GUANGZHOU |
COSCO |
2006 |
9,469 |
(*) |
August 2020(4) |
12 |
COSCO NINGBO |
COSCO |
2006 |
9,469 |
(*) |
August 2020(4) |
13 |
COSCO YANTIAN |
COSCO |
2006 |
9,469 |
28,900 |
May 2020 |
14 |
COSCO BEIJING |
COSCO |
2006 |
9,469 |
28,900 |
May 2020 |
15 |
COSCO HELLAS |
COSCO |
2006 |
9,469 |
28,900 |
May 2020 |
16 |
MSC AZOV |
MSC |
2014 |
9,403 |
43,000 |
December 2026(5) |
17 |
MSC AMALFI |
MSC |
2014 |
9,403 |
46,300 |
March 2027(6) |
18 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
46,300 |
February 2027(7) |
19 |
MSC ATHENS(ii) |
MSC |
2013 |
8,827 |
42,000 |
January 2026(8) |
20 |
MSC ATHOS(ii) |
MSC |
2013 |
8,827 |
42,000 |
February 2026(8) |
21 |
VALOR |
Hapag Lloyd |
2013 |
8,827 |
34,500 |
April 2023 |
22 |
VALUE |
Hapag Lloyd |
2013 |
8,827 |
34,500 |
April 2023 |
23 |
VALIANT |
Evergreen/Hapag Lloyd |
2013 |
8,827 |
41,700/34,500 |
June 2023(9) |
24 |
VALENCE |
Evergreen/Hapag Lloyd |
2013 |
8,827 |
41,700/34,500 |
July 2023(9) |
25 |
VANTAGE |
Evergreen/Hapag Lloyd |
2013 |
8,827 |
41,700/34,500 |
September 2023(9) |
26 |
NAVARINO |
MSC |
2010 |
8,531 |
23,000 |
March 2021 |
27 |
MAERSK KLEVEN |
Maersk |
1996 |
8,044 |
17,500 |
April 2021 |
28 |
MAERSK KOTKA |
Maersk |
1996 |
8,044 |
17,500 |
April 2021 |
29 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
16,000 |
June 2022 |
30 |
MAERSK KAWASAKI |
Maersk |
1997 |
7,403 |
24,750 |
June 2020 |
31 |
KURE |
COSCO |
1996 |
7,403 |
21,500 |
May 2020 |
32 |
KOKURA |
- |
1997 |
7,403 |
- |
- |
33 |
MSC METHONI |
MSC |
2003 |
6,724 |
29,000 |
September 2021 |
34 |
YORK |
Maersk |
2000 |
6,648 |
21,500 |
May 2020 |
35 |
MAERSK KOBE |
Maersk |
2000 |
6,648 |
17,000 |
May 2020 |
36 |
SEALAND WASHINGTON |
Maersk |
2000 |
6,648 |
(*) |
March 2022(10) |
37 |
SEALAND MICHIGAN |
Maersk |
2000 |
6,648 |
(*) |
March 2022(10) |
38 |
SEALAND ILLINOIS |
Maersk |
2000 |
6,648 |
(*) |
March 2022(10) |
39 |
MAERSK KOLKATA |
Maersk |
2003 |
6,644 |
(*) |
March 2022(10) |
40 |
MAERSK KINGSTON |
Maersk |
2003 |
6,644 |
(*) |
March 2022(10) |
41 |
MAERSK KALAMATA |
Maersk |
2003 |
6,644 |
(*) |
March 2022(10) |
42 |
VENETIKO |
Hapag Lloyd |
2003 |
5,928 |
20,000 |
August 2020 |
43 |
ENSENADA (i) |
ONE |
2001 |
5,576 |
21,000 |
May 2020 |
44 |
ZIM NEW YORK |
ZIM |
2002 |
4,992 |
12,430 |
October 2020(11) |
45 |
ZIM SHANGHAI |
ZIM |
2002 |
4,992 |
12,430 |
October 2020(11) |
46 |
LEONIDIO(ii) |
Maersk |
2014 |
4,957 |
14,200 |
December 2024 |
47 |
KYPARISSIA(ii) |
Maersk |
2014 |
4,957 |
14,200 |
November 2024 |
48 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
(*) |
July 2025 |
49 |
MARATHOPOLIS |
Maersk |
2013 |
4.957 |
(*) |
July 2025 |
50 |
OAKLAND EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
13,750 |
January 2021 |
51 |
HALIFAX EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
10,000 |
October 2020 |
52 |
SINGAPORE EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
10,000 |
July 2020 |
53 |
VULPECULA |
- |
2010 |
4,258 |
- |
- |
54 |
VOLANS |
Maersk |
2010 |
4,258 |
12,000 |
May 2020 |
55 |
JPO VIRGO |
CMA CGM |
2009 |
4,258 |
13,850 |
May 2020 |
56 |
VELA |
- |
2009 |
4,258 |
- |
Dry Dock |
57 |
ULSAN |
Maersk |
2002 |
4,132 |
12,000 |
June 2021 |
58 |
POLAR ARGENTINA(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
October 2024 |
59 |
POLAR BRASIL(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025 |
60 |
LAKONIA |
- |
2004 |
2,586 |
- |
- |
61 |
ETOILE |
(*) |
2005 |
2,556 |
(*) |
August 2020 |
62 |
AREOPOLIS |
Yang Ming |
2000 |
2,474 |
9,100 |
May 2020 |
63 |
MONEMVASIA(i) |
Maersk |
1998 |
2,472 |
9,250 |
November 2021 |
64 |
MESSINI |
Evergreen |
1997 |
2,458 |
8,650 |
May 2020 |
65 |
ARKADIA(i) |
Evergreen |
2001 |
1,550 |
8,650 |
September 2020 |
66 |
PROSPER |
Evergreen |
1996 |
1,504 |
7,100 |
May 2020 |
67 |
MICHIGAN |
MSC |
2008 |
1,300 |
6,650 |
September 2020 |
68 |
TRADER |
- |
2008 |
1,300 |
- |
- |
69 |
ZAGORA |
MSC |
1995 |
1,162 |
6,500 |
May 2020 |
70 |
LUEBECK |
MSC |
2001 |
1,078 |
6,200 |
January 2021 |
Newbuilds
|
Vessel Name |
Shipyard |
Capacity(TEU) |
Charterer |
Expected Delivery(12) |
1 |
YZJ2015-2057 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q3 2020 |
2 |
YZJ2015-2058 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q3 2020 |
3 |
YZJ2015-2059 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q3 2020 |
4 |
YZJ2015-2060 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q2 2021 |
5 |
YZJ2015-2061 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q2 2021 |
(1) |
Daily charter rates are gross, unless stated otherwise. Amounts set
out for current daily charter rate are the amounts contained in the
charter contracts. |
(2) |
Charter terms and expiration dates are based on the earliest date
charters could expire. |
(3) |
This charter rate will be earned by Cape Artemisio from May 12,
2020. Until then the daily charter rate will be $32,500 (net). |
(4) |
An undisclosed charter rate will be earned by each vessel from May
15, 2020 until expiry of the charters. Until then the daily charter
rate will be $28,900. |
(5) |
Following scrubbers’ installation, the daily rate for MSC Azov will
be increased from the current daily rate of $43,000 until December
2, 2023. The charter will also be extended for 3 years. |
(6) |
This charter rate will be earned by MSC Amalfi until March 16,
2024. From the aforementioned date until the expiry of the charter
the daily rate will be $35,300. |
(7) |
This charter rate will be earned by MSC Ajaccio until February 1,
2024. From the aforementioned date until the expiry of the charter
the daily rate will be $35,300. |
(8) |
Following scrubbers’ installation, the daily rate will be increased
from the current daily rate of $42,000 until the original earliest
redelivery dates of the vessels (January 29, 2023-MSC Athens and
February 24, 2023-MSC Athos). The charters will also be extended
for 3 years. |
(9) |
Upon redelivery of each vessel from Evergreen between June 2020 and
January 2021, each vessel will commence a 3 year charter with Hapag
Lloyd at a daily rate of $34,500. Until then the daily charter rate
of each vessel will be $41,700. |
(10) |
The daily rate for Sealand Washington, Sealand Michigan, Sealand
Illinois, Maersk Kolkata, Maersk Kingston and Maersk Kalamata is a
base rate, adjusted pursuant to the terms of a profit/loss sharing
mechanism based on market conditions until expiry of the
charter. |
(11) |
The amounts in the table reflect the current charter terms, giving
effect to our agreement with ZIM under its 2014 restructuring plan.
Based on this agreement, we have been granted charter extensions
and have been issued equity securities representing 1.2% of ZIM’s
equity and approximately $8.2 million in interest bearing notes
maturing in 2023. In May 2019, the Company exercised its option to
extend the charters of ZIM New York and ZIM Shanghai for a one year
period at market rate plus $1,100 per day per vessel while the
notes remain outstanding. The rate for this fifth optional year has
been determined at $12,430 per day. |
(12) |
Based on latest shipyard construction schedule, subject to
change. |
|
|
(i) |
Denotes vessels acquired pursuant to the Framework Deed. The
Company holds an equity interest ranging between 25% and 49% in
each of the vessel-owning entities. |
(ii) |
Denotes vessels subject to a sale and leaseback
transaction. |
|
|
(*) |
Denotes charterer’s identity and/or current daily charter rates
and/or charter expiration dates, which are treated as
confidential. |
Consolidated Statements of
Income
|
|
|
Three-month period endedMarch 31, |
(Expressed in thousands of U.S. dollars, except share and per share
amounts) |
|
|
2019 |
|
|
|
2020 |
|
|
|
REVENUES: |
|
|
|
|
|
|
Voyage revenue |
|
$ |
112,974 |
|
|
$ |
121,404 |
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
Voyage expenses |
|
|
(1,836 |
) |
|
|
(2,518 |
) |
Voyage expenses – related
parties |
|
|
(960 |
) |
|
|
(1,587 |
) |
Vessels’ operating
expenses |
|
|
(29,964 |
) |
|
|
(27,870 |
) |
General and administrative
expenses |
|
|
(1,263 |
) |
|
|
(1,402 |
) |
Management fees - related
parties |
|
|
(5,548 |
) |
|
|
(5,322 |
) |
Non-cash general and
administrative expenses and non-cash other items |
|
|
(778 |
) |
|
|
(676 |
) |
Amortization of dry-docking
and special survey costs |
|
|
(2,276 |
) |
|
|
(2,207 |
) |
Depreciation |
|
|
(29,855 |
) |
|
|
(28,136 |
) |
Gain / (Loss) on sale /
disposal of vessels |
|
|
(18,420 |
) |
|
|
10 |
|
Loss on vessel held for
sale |
|
|
- |
|
|
|
(232 |
) |
Vessels’ impairment loss |
|
|
(3,042 |
) |
|
|
(3,071 |
) |
Foreign exchange losses |
|
|
(11 |
) |
|
|
(142 |
) |
Operating
income |
|
$ |
19,021 |
|
|
$ |
48,251 |
|
|
|
|
|
|
|
|
OTHER INCOME
/ (EXPENSES): |
|
|
|
|
|
|
Interest income |
|
$ |
835 |
|
|
$ |
647 |
|
Interest and finance
costs |
|
|
(22,933 |
) |
|
|
(18,467 |
) |
Income from equity method
investments |
|
|
1,703 |
|
|
|
4,164 |
|
Other |
|
|
41 |
|
|
|
428 |
|
Loss on derivative
instruments |
|
|
(321 |
) |
|
|
(2,247 |
) |
Total other
income /
(expenses) |
|
$ |
(20,675 |
) |
|
$ |
(15,475 |
) |
Net Income
/ (Loss) |
|
$ |
(1,654 |
) |
|
$ |
32,776 |
|
Earnings allocated to
Preferred Stock |
|
|
(7,643 |
) |
|
|
(7,693 |
) |
Gain on retirement of
Preferred Stock |
|
|
- |
|
|
|
541 |
|
Net Income / (Loss)
available to common stockholders |
|
$ |
(9,297 |
) |
|
$ |
25,624 |
|
|
|
|
|
|
|
|
Earnings / (Losses) per common
share, basic and diluted |
|
$ |
(0.08 |
) |
|
$ |
0.21 |
|
Weighted average number of
shares, basic and diluted |
|
|
113,035,525 |
|
|
|
119,535,940 |
|
|
|
|
|
|
|
|
|
|
COSTAMARE
INC.Consolidated Balance Sheets
|
|
As of December
31, |
|
|
As of March
31, |
(Expressed in thousands of U.S. dollars) |
|
2019 |
|
|
2020 |
ASSETS |
|
|
|
|
(Unaudited) |
CURRENT
ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
$ |
148,928 |
|
|
$ |
189,151 |
|
Restricted cash |
|
6,912 |
|
|
|
8,656 |
|
Accounts receivable |
|
7,397 |
|
|
|
8,926 |
|
Inventories |
|
10,546 |
|
|
|
10,276 |
|
Due from related parties |
|
7,576 |
|
|
|
12,651 |
|
Fair value of derivatives |
|
748 |
|
|
|
70 |
|
Insurance claims
receivable |
|
1,607 |
|
|
|
1,285 |
|
Asset held for sale |
|
4,908 |
|
|
|
1,926 |
|
Time charter assumed |
|
192 |
|
|
|
191 |
|
Prepayments and other |
|
8,430 |
|
|
|
8,570 |
|
Total current
assets |
$ |
197,244 |
|
|
$ |
241,702 |
|
FIXED ASSETS,
NET: |
|
|
|
|
|
Right-of-use assets |
$ |
188,429 |
|
|
$ |
186,751 |
|
Vessels and advances, net |
|
2,431,830 |
|
|
|
2,425,472 |
|
Total fixed assets,
net |
$ |
2,620,259 |
|
|
$ |
2,612,223 |
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
Equity method investments |
$ |
111,681 |
|
|
$ |
88,784 |
|
Deferred charges, net |
|
21,983 |
|
|
|
26,496 |
|
Accounts receivable,
non-current |
|
8,600 |
|
|
|
6,785 |
|
Restricted cash |
|
40,031 |
|
|
|
39,570 |
|
Fair value of derivatives,
non-current |
|
605 |
|
|
|
- |
|
Time charter assumed,
non-current |
|
1,030 |
|
|
|
983 |
|
Other non-current assets |
|
10,525 |
|
|
|
10,682 |
|
Total
assets |
$ |
3,011,958 |
|
|
$ |
3,027,225 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
Current portion of long-term
debt |
$ |
210,745 |
|
|
$ |
211,951 |
|
Accounts payable |
|
6,215 |
|
|
|
11,209 |
|
Due to related parties |
|
473 |
|
|
|
1,602 |
|
Finance lease liabilities |
|
16,810 |
|
|
|
16,856 |
|
Accrued liabilities |
|
19,417 |
|
|
|
22,283 |
|
Unearned revenue |
|
10,387 |
|
|
|
10,676 |
|
Fair value of derivatives |
|
397 |
|
|
|
2,346 |
|
Other current liabilities |
|
2,090 |
|
|
|
2,250 |
|
Total current
liabilities |
$ |
266,534 |
|
|
$ |
279,173 |
|
NON-CURRENT
LIABILITIES |
|
|
|
|
|
Long-term debt, net of current
portion |
$ |
1,206,405 |
|
|
$ |
1,195,655 |
|
Finance lease liabilities, net
of current portion |
|
119,925 |
|
|
|
115,694 |
|
Fair value of derivatives, net
of current portion |
|
433 |
|
|
|
5,488 |
|
Unearned revenue, net of
current portion |
|
7,933 |
|
|
|
9,007 |
|
Total non-current
liabilities |
$ |
1,334,696 |
|
|
$ |
1,325,844 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
Preferred stock |
$ |
- |
|
|
$ |
- |
|
Common stock |
|
12 |
|
|
|
12 |
|
Additional paid-in
capital |
|
1,351,352 |
|
|
|
1,355,217 |
|
Retained earnings |
|
60,578 |
|
|
|
74,165 |
|
Accumulated other
comprehensive loss |
|
(1,214 |
) |
|
|
(7,186 |
) |
Total stockholders’
equity |
$ |
1,410,728 |
|
|
$ |
1,422,208 |
|
Total liabilities and
stockholders’ equity |
$ |
3,011,958 |
|
|
$ |
3,027,225 |
|
Costamare (NYSE:CMRE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Costamare (NYSE:CMRE)
Historical Stock Chart
From Jul 2023 to Jul 2024